(RTTNews) – Japanese car manufacturer Honda Motor Co. Ltd. (HMC) announced Wednesday that its first quarter loss attributable to the owners of the parent company of 80.8 billion Japanese yen, compared to a profit of 172.3 billion yen last year.
The impact of the COVID-19 pandemic was estimated to be approximately 440.0 billion yen.
The operating loss was 113.6 billion yen, compared to 252.4 billion yen last year. This despite minimizing sales, general and administrative costs.
Sales revenue declined 46.9 percent to 2.12 trillion yen from 4 trillion yen a year ago, due primarily to a decrease in sales revenue from all businesses with weak sales volume.
For fiscal year 2021, Honda expects to make a attributable profit of 165 billion yen, an operating profit of 200 billion yen and a cash of 12.80 trillion yen, although the long-term outlook remains dubious due to the effect of COVID-19.
Last year, the company’s attributable profit was 455.7 billion yen, operating profit of 633.6 billion yen and cash in 14.93 billion yen.
Honda said he hopes to recover from the adverse will have an effect on COVID-19 towards the end of the fiscal year. However, the pre-tax profit forecast for the existing fiscal year includes an effect of approximately 665.0 billion yen of COVID-19.
In Japan, Honda shares were 2,827 yen, up 2.17%.